Hind Latex to set up cheap hospital facilities

Hindustan Latex, the mini ratna company based in Thiruvananthapuram, has floated a joint venture with US-based Acumen Fund to set up a chain of small hospitals that will provide affordable maternity and child healthcare facilities for low-income families.

The 50:50 partnership, christened LifeSpring Hospitals Private Limited, has been incorporated with an authorised capital of Rs 20 crore, said M Ayyappan, chairman and managing director, Hindustan Latex.

Acumen, a non-profit, philantrophic venture fund will invest Rs 7.83 crore initially. "We will have five hospitals in 2008 and 30 across the country by end of 2010," Ayyappan said.

The first five LifeSpring hospitals will come up in rural and semi-urban pockets of Andhra Pradesh, and more are planned in adjoining Karnataka and Maharashtra states.

The unique aspect of LifeSpring Hospitals is that patients will be charged about 30 to 50 per cent that of the prevailing rates at major institutions.

For example, the fees for a normal delivery would be just Rs 1,499, as compared to the more than Rs 5,000 charged elsewhere, Ayyappan explained.

"With 80 per cent of healthcare expenditure in the country being out-of-pocket, LifeSpring Hospitals would significantly reduce the burden of rising healthcare costs on the low-income population, and thereby help to reduce poverty levels," Ayyappan said.